Surging building material costs stifle Nigeria’s housing sector, thwarting affordable housing goals

Nigeria’s property sector faces severe setbacks as the cost of building materials soars, stalling both public and private construction projects and dampening hopes for affordable housing.

The rapid increase in prices, affecting materials such as cement, iron rods, and paints, poses a significant hurdle to the government’s efforts to address the nation’s housing deficit, estimated at 27 million units.

A survey by Daily Trust reveals a staggering 100% rise in building material costs over the past year, fueled by inflation, supply chain disruptions, high transportation expenses, and escalating energy prices. Cement prices, for instance, have doubled from N4,000 to N8,800 per bag, while iron rods now cost over N1.6 million per ton.

Developers and individual builders are feeling the pinch. Many have been forced to pause or abandon projects as expenses spiral beyond reach. A civil servant, Joshua Oluwatobi, shared that the price of iron rods for his personal project spiked within hours, while Abuja-based builder Nasiru Mohammed noted that his company has had to halt all ongoing projects.

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Retailers, too, are struggling. Building materials supplier Chijoke Ani explained that customers are delaying purchases, hoping prices will drop. “We feel the pain of our customers, but we cannot reduce prices without cutting into our margins,” he added.

Real estate experts warn that the high cost of materials may indefinitely delay affordable housing initiatives. The Vice President of the North Central Real Estate Developers Association of Nigeria, Osilama Osilama, attributed the situation largely to naira devaluation and called for government intervention, particularly in policies related to forex stability and subsidy removal.

The Tinubu administration’s housing policies face mounting pressure to address these challenges. The Minister of Housing, Ahmed Dangiwa, has previously engaged building material manufacturers to seek solutions and plans to establish regional manufacturing hubs to curb the rising costs. However, with material prices continuing to soar, affordable housing for Nigerians remains a distant goal.